Private payrolls rose by 147,000 in October, according to the ADP Research Institute.
Economists had forecast that payrolls increased by 165,000 last month, according to Bloomberg.
Over the last few months, ADP’s data has shown a slowdown in the pace of jobs growth. But that’s expected because fewer people are looking for work, with the unemployment rate at an eight-year low and labour-force participation relatively weak.
Also, employers are finding it more difficult to fill positions that require skilled workers.
Employment in the goods-producing sector shrank by 18,000 jobs, led by a plunge in the construction sector and continued mining layoffs. The much larger services sector gained 165,000 jobs.
“Job growth remains strong although the pace of growth appears to be slowing,” said Mark Zandi, the chief economist of Moody’s Analytics, in the release. “Behind the slowdown is businesses’ difficulty filling open positions. However, there is some weakness in construction, education and mining.”
As usual, this release comes ahead of the official jobs report on Friday from the Bureau of Labour Statistics, which is expected to show that nonfarm payrolls increased by 175,000 in October.